Posted by frtaylor on 13th of Sep 2016 at 02:36 pm
Question for anyone: in a downtrend, a good indicator of a
bottom can be a divergence between SPX and VIX, i.e. SPX new low,
but VIX not. Does anyone have further details on this idea?
Posted by sschulman on 16th of Sep 2016 at 11:37 am
Hi FRTaylor - been thinking about your question. The first
obvious answer is no, because vix is a reflection of what the
market is doing so vix can't lead the market.
BUT, sometimes a pattern might be recognized on the vix chart
before it's recognized on the spx chart - like head and shoulders
or overbought or I dunno, whatever.
So, you might have a point.
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Question for anyone: in a
Posted by frtaylor on 13th of Sep 2016 at 02:36 pm
Question for anyone: in a downtrend, a good indicator of a bottom can be a divergence between SPX and VIX, i.e. SPX new low, but VIX not. Does anyone have further details on this idea?
Hi FRTaylor - been thinking
Posted by sschulman on 16th of Sep 2016 at 11:37 am
Hi FRTaylor - been thinking about your question. The first obvious answer is no, because vix is a reflection of what the market is doing so vix can't lead the market.
BUT, sometimes a pattern might be recognized on the vix chart before it's recognized on the spx chart - like head and shoulders or overbought or I dunno, whatever.
So, you might have a point.